Credit Analyst Interview Questions and Answers for Freshers

Credit analyst evaluates the creditworthiness of individuals or companies applying for loans.

• Credit analyst assesses the risk of lending money to borrowers.

• They analyze financial data, credit reports, and other information to determine the likelihood of repayment.

• Minimum CIBIL score is 300 and maximum is 900.

• Repo rate is the rate at which the central bank of a country lends money to commercial banks.

• Inflation rate is the rate at which the general level of prices for goods and...read more

Credit analysts evaluate the creditworthiness of individuals or organizations applying for loans.

• Credit analysts assess the financial statements and credit history of borrowers to determine their ability to repay loans

• Debt service coverage ratio (DSCR) is a measure of a borrower's ability to meet debt obligations

• Basic ratios include debt-to-equity ratio, current ratio, and quick ratio

• CC stands for credit card, a payment card issued to users to enable the cardholder to pay a m...read more

The ideal current ratio for a company to finance WCDL & Term Loan depends on the industry and specific circumstances.

• A current ratio of 1.5 to 2 is generally considered healthy for most industries.

• A higher current ratio indicates a company is more capable of covering its short-term obligations.

• However, a very high current ratio may suggest inefficient use of assets.

• Conversely, a low current ratio may indicate liquidity issues.

• It's important to consider industry norms and the ...read more

Three financial statements used by companies to assess their financial performance.

• Income Statement: Shows a company's revenues, expenses, and profits over a specific period of time.

• Balance Sheet: Provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

• Cash Flow Statement: Details the cash inflows and outflows of a company, helping to assess its liquidity and financial health.

Operating lease is a short-term lease where the lessor retains ownership of the asset, while finance lease is a long-term lease where the lessee assumes ownership.

• Operating lease is typically used for assets with a shorter useful life, while finance lease is used for assets with a longer useful life.

• In an operating lease, the lessor is responsible for maintenance and repairs, while in a finance lease, the lessee is responsible.

• Operating lease payments are treated as operating...read more